IT major Infosys, India's second-largest software services exporter, reported on Tuesday a 5% increase in quarterly net profit, bolstered by a surge in demand for IT outsourcing services from clients in the United States, its biggest market.
The results are ahead of market expectations and approve of the growth strategy adopted by Vishal Sikka, CEO and managing director of Infosys Ltd, to take the company to the top echelon of the global IT industry by 2020.
Infosys, which provides IT services to clients like Apple Inc, Volkswagen AG and Wal-mart Stores Inc, consolidated net profit to Rs 3,030 crore for the June quarter, up from Rs 2,886 crore a year ago. Consolidated revenue for the quarter was up 12.4% to Rs 14,354 crore, from Rs 12,770 crore in April-June, 2014.
The company has projected a positive outlook for the company in the financial year ending March 2016. It expects to rake in a revenues growth of 10%-12% in constant currency and 11.5%-13.5% in Indian rupee at a conversion rate of 1 US dollar valued at Rs 63.65 for the rest of financial year 2016.
"Our efforts in redesigning our clients' experience and our widespread adoption of innovation, both in grassroots and breakthroughs, are starting to bear fruit in large deal wins and in the growth of large clients," Sikka said.
While Infosys is still early in its journey to become the leading next-generation services company, this gives a good momentum for the rest of the year, he added.
In dollar terms, the company's consolidated net profit declined 1.3% to $476 million in the first quarter of 2015-16, while revenue rose 5.7% to $2.25 billion.
"We are operating within our stated margin band, balancing strategic investments and client focus with operational efficiencies," Infosys CFO Rajiv Bansal said.
Pricing environment is competitive, which Infosys is addressing through automation and improvement in productivity, he added.
The company added 79 clients in the said quarter, signed six large deals with a total contract value of $688 million. Its volume growth stood at 5.4%.
The company added 3,336 employees, taking its headcount to 1,79,523 employees as on June 30, 2015. Its attrition rate was at 14.2% for the said quarter.
Liquid assets, including cash and cash equivalents, available-for-sale financial assets and government bonds, were Rs 30,235 crore in the quarter under review compared to Rs 32,585 crore as on March 31, 2015.
Shares of Infosys were trading 6.65% up at Rs 1,068.50 apiece on the BSE in early trade.
(With agency inputs)
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